In these two classes, we will take up the subject of asset securitization. Looking first at the years leading up to the financial crisis and then at the reforms of the sector as a result of the Dodd-Frank Act.

In today's class, we will look at the rise of securitization over the past thirty years. Our initial reading is an influential article written by a leading management consultant to the financial services industry back in 1988, outlining the benefits of securitization. The readings then move ahead nearly two decades and present several legal cases struggling with new issues of legal interpretation that securitization posed for the courts. A NY Times articles from 2013 discusses another, novel legal issue that arose in the aftermath of the financial crisis. As background reading, at the of the assignment, is a 2011 law review article offering one perspective on what went wrong with mortgage securitizations leading up to the Financial Crisis of 2007-2008.

In today's class, we will continue our discussion of the securitization of financial assets, completing our discussing of materials assigned for Class Twelve and then turning to two additional readings. The first new reading is an article on Regulation Bubbles. Please read Parts I and II of the article, focusing in on the new Dodd Frank Act risk retention rules. As you read through these sections consider the extent to which the authors differ with the views expressed in the Michael Simkovic articles assigned as background reading in Class Twelve. The second reading for today's class explores Dodd-Frank Act reforms wiht respect to credit rating agencies. As you read over this paper, consider whether you think it wise that Congress limited the extent to which regulatory authorities can rely on credit ratings in the future. Finally, as time permits, we may take up two research projects of current students: one on the seuciritization of residential mortgages today and the second on litigation against credit rating agencies.

For the next two classes, we will explore the work of the Consumer Financial Protection Bureau. As an introduction to the subject, take a look at Adam Levitin's article on the Bureau, which is assigned as background.

In today's class, we will dig into the regulation of mortgages under the Dodd Frank Act. The ABA memorandum gives an overview of the topic, which you should read first. Then take a look at Part III and IV of the Regulating Against Bubbles article assigned for Class Twelve. Finally, we will take a brief deep dive into one specific rule-making -- Integrated Disclosure for RESPA and TILA -- focusing specifically on the CFPB's reliance on a Quantitative Study. The study is appended below. Please read over the executive summary of the study and then skim the Federal Register release, focusing on the highlighted references to the Quantitative Study. To what degree does the study demonstrate important benefits for this new regulation?

In today's class, we will be covering two topics.  The first is law of fair lending.  We will start a memorandum arising out of a class action challenging discrimination in mortgage lending several years ago and then will look at a subsequent legal decision in a similar action. There follows a brief description from SCOTUS Blog of a recent oral argument in the Supreme Court.  Our second topic will be benefit analysis in consumer protection regulation. Here a somewhat lengthy paper on the topic is posted.  Read through the introduction and Part I, which is a literature review on the subject.  The balance of the paper is optional, and you should read only to the extent that your personal interests dictate.

In today's class, we will continue our discussion of the work of the CFPB. We will start by completing our consideration of the CFPB's Integrated Disclosure Regulations for RESPA and TILA. To what extent does the Know Before You Owe Study demonstrate that the regulation will benefit consumers more than the costs of transitioning to a new disclosure regime. Our next topic for class discussion will be the structure of the CFPB itself, as outlined in the Adam Levitin article assigned for Class Thirteen. The one new reading for today's class is Lauren Willis's article on When Nudges Fail. As you review this piece, consider how it relates (or does not relate) to the Bubb and Pildes article on retirement savings we read earlier in the semester.